Personalization in Financial Services

August 11, 2022


Financial services marketers now must meet new requirements. In order to provide customers with what they want and increase market share, businesses must also stay abreast of new finance and marketing technology. This goes beyond simply keeping up with new marketing trends in the financial services sector.

The personalization era has been slow to catch on with banks and other financial services firms, but many are now making an effort to catch up as they understand this marketing idea is not a fad. In addition, new technology is developing to assist firms in gathering customer insights while retaining privacy as worries about data protection change.

The time is now for marketers in the financial services sector to set the stage for a unified customer experience that considers more complex criteria when making recommendations to clients. Let’s examine the various methods that businesses can use to create customization in banking:

What Does Banking Personalization Mean?

Delivering a good service or product to a customer based on individual experiences and previous customer data is what personalization in banking is all about. It can promote trust, which in turn can increase output and income. by developing a seamless user experience that unifies consumer and operational data across all branches, applications, and call centers. In summary, personalization enables businesses to provide clients with remedies before they ever become aware of an issue.

Personalization in banking isn’t a brand-new trend; rather, it’s a reinvention of the commercial strategies that attracted customers to banks before to the advent of mass marketing.

Consumers used to frequent banks where tellers knew them by name because they were all involved in the same community back in the day.

What Advantages Do Personalized Financial Services Offer?

The financial services business has recently become considerably more transactional; relationships with bank tellers are no longer as important. Instead, shoppers were more interested in which credit card issuers don’t impose maintenance fees and which offers the greatest rewards programs.

The individualized nature of financial services deteriorated in the rush to reduce costs. This is a significant opportunity lost. Customers nowadays are looking to their banks for insightful information and guidance, but many banks lack the ability to provide this because it’s impossible to provide sound financial counsel without knowing a customer’s goals and priorities.

The following advantages of customization in banking, in addition to increased revenue:

  • An increase in conversion and engagement rates
  • Increased client retention and loyalty
  • Improved client experience
  • Across-the-board messaging consistency
  • Increased marketing ROI

As an illustration, consider credit cards. Anyone who accepts credit cards? Every bank and the majority of large merchants are vying for the business of people with reliable sources of income, reliable payment histories, and regular credit card usage.

Due to the oversaturation of the market, banks are now compelled to become more competitive and tighten their margins or take a chance on customers with low credit scores.

Personalization Options Available to Banking and Financial Services Teams

In general, banks and other financial services firms can use one of three broad categories of personalization:

Prescriptive Personalization

Based on past data, prescriptive personalization seeks to predict a customer’s preferences and needs. Marketers can use this technique to develop rules and workflows that help them more easily manage people while keeping in mind the objectives of the organization.

Real-Time Personalization

To generate a customized consumer experience while it is happening, real-time personalization uses both recent and previous data. Marketing teams, for instance, can use this personalization to offer suggestions to customers while they are actively shopping on the website. This promotes customer engagement and sales conversions.

Machine-Learning Personalization

Machine learning algorithms that are sophisticated are used in this kind of personalization. Teams may decide how to interact with clients depending on individual behavior with AI-driven automation.

Five effective customizing techniques

Increase acquisition efforts by real-time customizing experiences for each marketing channel.

The best way to greet a new user is to acknowledge their method of arrival and the value proposition that initially drew them to your website. Continuity is essential during these crucial early stages of the relationship, and failing to take into account a potential customer’s initial connection with the brand can cause them to become disillusioned and go elsewhere for what they were seeking.

For instance, it would be inconsistent to direct consumers to a landing page with information for a different travel card or to create a savings account if a search engine marketing (SEM) campaign advertises an unlimited 2% cash-back credit card offer. The original advertising that was served to the visitor should be identified instead in order to match the relevant landing page messaging in real-time, using URL parameters and campaign data.

Encourage continuing brand involvement across channels.

The chance to get to know a new user if they end up leaving doesn’t have to be permanently gone. Not if other channels are provided to actively seek and forge connections offsite within the brief window of time people access the site.

An email address is the most valuable piece of visitor data a brand can collect; if provided voluntarily by the visitor, many opportunities open up to send emails or customized messages intended for re-engaging at a more convenient time. The use of a mobile app, which has the ability to deliver push and location-based notifications, direct mail, and more, is a secondary method of communication.

Real-time communications can reduce conversion funnel dropoff.

Financial decisions can be challenging since they call for complex levels of analysis and reasoning, as well as mathematical calculations that often demand greater cognitive work. Therefore, the advantages of services and offers might not be obvious right away, causing reluctance or irritation.

By spotting inactivity or excessive mouse movement, link these people to an agent who is available by phone and has all the information they require to clinch the deal.

Deliver timely or delicate information to help clients make decisions.

In addition to directly or indirectly accessing user-specific data, there is a wealth of contextual, geographic, and environmental data available that can be quite helpful when attempting to engage certain people.

Imagine that severe weather is predicted to affect some areas. People in these high-risk areas would be very well served if they were promptly informed about choices for protection, such as insurance coverage, during such sad incidents.

Encourage the discovery of new financial products and look for upsell possibilities

Without product recommendations to promote upsells and cross-sales, personalized journeys are lacking. Recommendations are the ideal solution, enabling FSI brands to match the right product or promotion to each user based on their intent, account information, and the current context.

This is true whether an existing customer could benefit from complementary financial products or a new user needs a little extra motivation to make a decision.


Marketers for financial services must comprehend the consumer’s point of view in order to provide them with individualized, direct forms of marketing communication.

Marketers in the financial services sector can benefit from greater client loyalty and rapid market share gain by utilizing the appropriate technology, strategies, and analytics.

Banks today face competition from technical behemoths that are using data to their advantage, not only from other banks. Financial services organizations must update their approach to campaign measurement to better understand their clients on a personal level in order to keep up with this changing climate.

Financial services organizations can decrease friction in the client journey and boost engagement by using a tailored, people-based approach to marketing.